Proposed changes to the rules on Employment Tribunals announced by the government yesterday will increase employer confidence to recruit, according to employment relations minister Ed Davey.

One of the proposals that the government believes will give a boost to the economy is to increase the qualifying period for employees before they can make a claim for unfair dismissal from one to two years. 

Davey told Recruiter: “I think employers can feel more confident that they can take more people, firstly because the Employment Tribunal system is going to get reformed so hopefully we will see fewer cases going there — particularly vexatious claims will be discouraged.

“And second, because of moving from one year to two years, I think people will feel able both to keep employees on when they get up to the one year period, but also feel they are able to take more people on because they won’t face unfair dismissal claims until the two years period. It’s about giving employers confidence, particularly small businesses, to take on more staff.”

For more from Ed Davey, see the next issue of Recruiter.